Reliance Industries Limited (RIL) has submitted a rephrased resolution plan to National Company Law Tribunal (NCLT), Ahmedabad, to Capture the debt-ridden Sintex Industries Ltd for an offer of Rs 2,700 crore to Rs 2,800 crore to the financial creditors, said sources aware of the development.
The Mukesh Ambani-led RIL has reportedly entered into a partnership with Assets Care & Reconstruction Enterprise (ACRE) for the bid to capture Sintex Industries, said sources.
The RIL offer includes payment to financial creditors and equity infusion for working capital requirements, said sources. In a BSE filing on Wednesday, Sintex Industries said the interim resolution professional has received revised resolution plans from all four prospective resolution applicants.
Sintex Industries, which was promoted by Amit Patel and family, specialises in the premium fashion industry. It provides fabric to global clients such as Armani, Hugo Boss, Diesel and Burberry. Other bidders include Welspun Group’ Easygo Textiles, GHCL, and Himatsingka Ventures, according to sources. “Revised Resolution Plans received from all four PRAs shall be evaluated by the Interim Resolution Professional and then shall be placed before the Committee of Creditors, for its further consideration,” Sintex said in its stock exchange filing.
The option of a Swiss challenge auction or an inter-se bidding was considered by the lenders recently, said sources. Sintex was founded in the 1930s as Bharat Vijay Mills, a composite textile mill in Kalol, Gujarat.
Lenders to Sintex got 16 EOIs Sintex was later rebranded as Sintex Industries. It deals in textiles and yarns, and has presence across major Asian, European, US and African markets.
In 2017, Sintex demerged its plastic business into Sintex Plastics Technology to focus on its yarn business.
In April 2021, NCLT, Ahmedabad admitted an insolvency process plea filed by Invesco Asset Management (India).
Earlier, lenders to Sintex Industries had got 16 expressions of interest (EoIs), including bids from foreign fund CarVal Investors and Varde Capital-backed Aditya Birla Asset Reconstruction Company.
